CONFIDENTIA
4
Long service payment
9.
Under the long-service payment provisions, which come into effect on 1 January 1986, an employee nearing the end of his working life would, according to the length of his service with a single employer, be entitled
entitled to a long-service payment as follows :·
-
Number of months final salary
Length of service
10 years
18 years or more
6.67 12
(The scheme provides for a maximum payment equivalent 12 months' final salary. At a rate of 2/3 of a month's wages for each year of service, the maximum payment would be attained after 18 years.)
10.
It should be noted that in the case of a long-service payment, no contribution is required from the employee.
Under
CPF, assuming equal joint contributions, the employee himself will have paid for one half of the benefit.
a
CONFIDENTIAL
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